TMI Blog1994 (4) TMI 381X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment year 1984-85, the Tribunal was justified in law in holding that the assessee changed the method of accounting for bonus payment from the 'Cash system' to the 'Mercantile system' and in that view allowing both the cash payment of Rs. 2,17,394 and Rs. 4,45,710 claimed on due basis during the assessment year 1984-85? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in deleting the disallowance of Rs. 4,45,710 being the provision made by the assessee for the bonus liabilities for the calendar year 1983? 3. Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in holding that the payment made during the financial y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the system of accounting took place for the first time in the previous year relevant to the assessment year 1984-85, the assessee-company charged to its profit and loss account for the previous year ending 31-12-1983, the bonus payment of Rs. 2,17,394 for the calendar year 1982 on actual payment basis and had also debited its profit and loss account for the year ending 31-12-1983 in respect of bonus payable for the said year. In other words, in the profit and loss account of the assessee-company drawn for the previous year ending 31-12-1983 corresponding to the assessment year 1984-85, there were two debits on account of bonus, one in the sum of Rs. 2,17,394 being the bonus actually paid during the said year for the calendar year 1982 on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s deduction in the earlier year in view of the fact that all along the bonus payments were being claimed and allowed as business deduction only on cash basis. The calendar year 1983 is the first year of change. Therefore both actual payments on account of bonus for the calendar year 1982 as well as the provision made by the assessee-company on account of bonus for the calendar year 1983 had to be debited in the profit and loss account of the assessee-company drawn for the calendar year 1983 corresponding to the assessment year 1984-85. It is nobody's case that change of accounting in respect of bonus is not bona fide. In this view of the matter, we have no hesitation in holding that the Tribunal correctly allowed the claim of the respon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce-tax even though paid within the financial year but not in accordance with the provisions of section 211 does not entitle the assessee to interest under section 214. We have gone through the text of the said decision. In the said decision, there were in all four questions of which question No. 2 specifically raised the issue: Whether advance-tax paid within the financial year but not strictly in accordance with the provisions of section 211 of the Act is entitled to interest under section 214? But, there were other two questions raising the issue whether giving effect to any order of the Board extending concessional benefit to the assessee resulting in the refund of advance-tax becoming in excess there could be said to be ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It is not the case of the assessee that the tax determined on the assessment under section 143(3) exceeded the amount of advance-tax paid by it. After the order under section 143(3) was passed, the Trust approached the Board under section 119 of the Income-tax Act, 1961. Under section 119, the Board can issue instructions and directions to the Income-tax authorities under the Board. If the Board considers it desirable or expedient, the Board can also direct any Income-tax authority, other than the Appellate Authority to grant relief to the assessee even though the period of limitation had set in for making any claim for exemption, deduction, refund or any other relief under the Income-tax Act. In the instant case, the assessee-Trus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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